Your group LTD probably isn't what you think

If you're employed, long-term disability is probably your most important coverage and the one you've never read. Three features, all standard, quietly shrink what it's really worth.

One: it flips to "any-occupation," usually around month 24

For the first two years, most group LTD pays if you can't do your job. After that, the definition changes to any job you're reasonably suited to. That's a much harder bar to clear — and it's the moment a lot of claims end. If your plan says "own-occ 24 months," you're really insured for your career for two years, and for near-total incapacity after that.

Two: if your employer pays the premium, your benefit is taxable

A plan that advertises "60% of salary" can land closer to 45% in your pocket once tax comes off. Most people budget the headline number. Check who pays the premium — it's the single fact that decides whether your benefit is taxed.

Three: CPP Disability usually doesn't stack on top — it offsets

Most group plans reduce their payment dollar-for-dollar by what CPP-D pays (basic $610.46/mo, up to $1,741.20/mo in 2026). So CPP-D often doesn't raise your income; it just shifts who pays for it.

Put those together and a "60% to a $5,000/month cap" plan can, for a higher earner, replace well under half of after-tax income — for two years, before the definition tightens. None of this is a scam; it's just the default nobody explains. Run our Disability Gap tool with your actual booklet numbers and see your real stack, month by month.